Have analysts changed their opinion on the stock?

AMC Entertainment Holdings, Inc. (NYSE: AMC) just released its first quarter report and things are looking optimistic. The results were generally credible, with revenues 4.0% higher than analysts’ forecasts, at $951 million. Higher revenue also led to lower statutory losses, which came in at US$0.62 per share, about 4.0% lower than analysts expected. This is an important time for investors because they can track a company’s performance in its report, see experts’ forecasts for next year, and see if there has been a change in expectations of the company. So we’ve gathered the latest post-earnings statutory consensus estimates to see what might be in store next year.

Check out our latest analysis for AMC Entertainment Holdings.

profit and revenue growth

Following the recent earnings report, the consensus of six analysts covering AMC Entertainment Holdings is forecasting revenues of US$4.61 billion in 2024. This implies a noticeable 4.1% decline in revenues compared to the last 12 months. Losses are expected to remain at around US$1.11. Yet before the latest results, analysts were forecasting revenues of $4.62 billion and losses of $1.45 per share in 2024. Although revenue estimates haven’t really changed, the future of AMC Entertainment Holdings looks a little different from the past, with a very promising drop in loss per share forecasts in particular.

The average price target held steady at US$4.42, suggesting business is performing in line with expectations. It might also be informative to examine the range of analyst estimates, to assess the extent to which outlier opinions differ from the average. The most optimistic AMC Entertainment Holdings analyst has a price target of US$8.00 per share, while the most pessimistic values ​​it at US$3.10. In this situation, we would likely place less value on analyst forecasts, because such a wide range of estimates could imply that the future of this business is difficult to assess accurately. Therefore, it may not be a good idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Looking at the bigger picture, one way to make sense of these forecasts is to see how they compare to both past performance and industry growth estimates. Over the past five years, revenues have declined by about 1.2% per year. Worse, forecasts essentially call for an accelerating decline, with an estimated annualized revenue decline of 5.4% through the end of 2024. In contrast, our data suggests that other companies (covered by analysts) in a similar sector should see their revenues increase by 8.3% per year. So while a lot of companies are expected to see growth, AMC Entertainment Holdings is unfortunately expected to see its revenue hit more than other companies in the industry.

The essential

The most obvious conclusion is that analysts have made no changes to their loss forecasts for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that they are moving in line with expectations. Although our data suggests that AMC Entertainment Holdings’ earnings are expected to underperform the broader industry. There was no real change in the consensus price target, suggesting that the company’s intrinsic value has not undergone any major changes with the latest estimates.

That said, the company’s long-term earnings trajectory is much bigger than next year. We have forecasts for AMC Entertainment Holdings through 2026, and you can see them for free on our platform here.

Before you move on to the next step, you need to know 4 warning signs for AMC Entertainment Holdings (2 are potentially serious!) that we discovered.

Any feedback on this article? Worried about the content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Leave a Reply

Your email address will not be published. Required fields are marked *